The Carla Vista Publications Textbook Company sells all of its books for $100 per book, and it currently costs $50 in variable costs to produce each text. The fixed costs, which include depreciation and amortization for the firm, are currently $2 million per year. Management is considering changing the firms production technology, which will increase the fixed costs for the firm by 32 percent but decrease the variable costs per unit by 32 percent. If management expects to sell 45,000 books next year, should they switch technologies? (Round answers to nearest whole dollar,e.g. 5,275.)

1.Currenmt EBIT?

2. If the firm changes technology, the firms new EBIT will be $?

3.should the firm adopt/reject?

The current EBIT for the firm is $